Inside the Vault- Page 65 of 89

Inside the Vault

May 17, 2017

Selling commission and dealer manager fees for all…

Selling commission and dealer manager fees for all… open nontraded REITs are now available in the Nontraded REIT Industry Review. These can be found on the top right hand side of each individual page for Open REITs.

May 16, 2017

What is the only Blue Vault publication available in print format?

What is the only Blue Vault publication available in print format? Answer: The Nontraded REIT Industry Review is the only publication available in print format. The Nontraded BDC and IFCEF Reviews, as well as all other nontraded REIT studies are online publications only.

May 11, 2017

What is a “debt investment fee” and how does it apply to a nontraded REIT?

What is a “debt investment fee” and how does it apply to a nontraded REIT? Answer: If a nontraded REIT invests in real estate-related debt instruments, it may pay a debt investment fee to the sponsor for arranging the acquisition of the debt investments. It has a similar impact on shareholder returns to an acquisition…

May 9, 2017

Blue Vault is pleased to release the Full Q4 2016 Industry Review containing…

Blue Vault is pleased to release the Full Q4 2016 Industry Review containing… Each of the following sections of data: Individual Performance Pages Industry Sales Data LifeStage Summaries Full-Cycle Listings and Events Industry Data Top Line Assessment Effective Nontraded REITs with Limited Operating Results Look for your Print…

May 8, 2017

How might an investment in a joint venture by a nontraded REIT represent increased leverage for its shareholders?

How might an investment in a joint venture by a nontraded REIT represent increased leverage for its shareholders? Answer: If a joint venture investment includes the use of debt within the structure of the joint venture, the effective leverage for nontraded REIT investors is the combination of the debt used by the nontraded REIT and…

May 3, 2017

How do nontraded REIT sponsors become eligible for “Subordinated Performance Fees”?

How do nontraded REIT sponsors become eligible for “Subordinated Performance Fees”? Answer: If the REIT achieves a non-compounded average rate of return for shareholders in excess of a stated benchmark (typically 6% or 7%) or hurdle rate, the sponsor is entitled to a share of the excess, typically 15%. This performance fee does not have…

May 2, 2017

Blue Vault is pleased to release the Q4 2016 Industry Sales Summary report…

Blue Vault is pleased to release the Q4 2016 Industry Sales Summary report… outlining 4th quarter 2016 capital raise data, as well as total 2016 yearly capital raise data. Capital raise is broken down by industry, sponsor and REIT offering, and evaluated by year, dating back to 1990. We hope you enjoy Blue Vault’s expanded…

May 1, 2017

What is “LIBOR” and how does it relate to the cost of debt for nontraded REITs?

What is “LIBOR” and how does it relate to the cost of debt for nontraded REITs? Answer: Many nontraded REITs have debt with interest rates that are set to vary with “LIBOR”, the London Interbank Offered Rate. It is the benchmark rate that some of the world’s leading banks charge each other for short-term loans.…

April 27, 2017

With a sliding scale of selling commissions for volume purchases of nontraded REIT shares, what happens to the net proceeds per share when selling commissions fall?

With a sliding scale of selling commissions for volume purchases of nontraded REIT shares, what happens to the net proceeds per share when selling commissions fall? Answer: Net proceeds per share remain the same as selling commissions fall because the effective purchase price per share falls with the selling commissions